Global Business Strategy Assignment, MUM, Malaysia Aggressive competition among competitors in one industry may lead to a lose-lose situation which in the long run jeopardizes

University Monash University Malaysia (MUM)
Subject Global Business Strategy

Aggressive competition among competitors in one industry may lead to a lose-lose situation which in the long run jeopardizes the whole industry. In this situation, the competing firms may decide to engage in collusion. Collusion is defined as collective attempts to reduce competition in a particular industry. OPEC is an example of explicit collusion. The collusion engages in petroleum output-fixing and price-fixing involving multiple countries that aim to increase joint profits.

Examine the following:

  • The objectives of OPEC, the members, and the development
  • The characteristics and obligations of OPEC price leader
  • The benefits and burdens of being the price leader in a cartel
  • The characteristics and obligations of OPEC member
  • The benefits and burdens of being an OPEC member One of the events that significantly affect oil prices is the Russia-Ukraine crisis.

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